Rethinking Capital Alignment

The question “how much skin do you have in the deal?” is emotional, not logical, and there are double standards everywhere.

• Investors allocate to public companies where executives hold no equity with upside compensation.

• They place capital into $100M+ funds with zero GP commitment.

• They trust blind pools run by analysts they’ll never meet.

Yet when it comes to private real estate, “co-investment” suddenly becomes the only valid measure of alignment for certain investors. The assumption is simple: if you’ve got capital in the deal, you must be committed.

But capital ≠ conviction.

A dollar amount doesn’t measure alignment.

Proportional exposure matters more than absolute dollars.

For our $B+ LPs, any allocation under $10M carries less risk for them than a single day of work for our team.

Beyond capital, our time, reputation, and execution are also all at risk, making our commitment disproportionate relative to any LP.

The distinction is critical.

If someone is a capital aggregator outsourcing execution to third parties, then yes—their own co-investment should be significant, maybe even exceeding expected fees.

But real operators, those who design, market, and execute, already have deep skin in the game.

Reputation, time, infrastructure, opportunity cost. Alignment isn’t optional. It’s structural.

Our LPs aren’t looking to place capital one-off deals. They want consistent and varied deployment opportunities—some $5M to $10M+ per year across different markets and properties.

Multiply that across our base of committed LPs, and the expectation is $30M–40M+ in annual deal flow.

If we personally had the means to put 10% down on $40M of real estate every year, we could go it alone. But alignment isn’t about avoiding partners, it’s about building a platform where capital and execution compound together.

Real alignment isn’t in symbolic GP capital. It’s in building a platform capable of sourcing, executing, and operating exceptional assets at scale—while giving investors diversified exposure across markets and properties.

That’s where conviction shows up. In our discipline, in our framework, in the resilience of our assets, and in our track record of replicating results, deal after deal.

For or us, true alignment comes down to three things:

• The quality of the deals we take on

• The results delivered through disciplined execution

• The resiliency of the properties themselves

That’s why we’re selective. We don’t chase transactions. We build partnerships—with capital that understands execution is the ultimate form of conviction.

Co-investment optics might look good on a spreadsheet.

But in our world, alignment comes from discipline, operating edge, and long-term value creation.

We’re all in on every deal. That’s our skin in the game.